21-05-2025
- Business
- New Straits Times
Malaysia's general insurance industry to grow at 6.6pct CAGR from 2025-2029
KUALA LUMPUR: Malaysia's general insurance industry is projected to grow at a compound annual growth rate (CAGR) of 6.6 per cent from RM24.6 billion in 2025 to RM31.8 billion by 2029 in terms of gross written premium (GWP), according to data and analytics company GlobalData.
In a statement, it said this growth is attributed to increased premium rates across lines, strong demand for natural catastrophe insurance, economic recovery, rising vehicle sales, and escalating healthcare costs.
"Motor, property, and personal accident and health (PA&H) insurance lines contributed 82.6 per cent of the general insurance GWP in 2024," it said.
Its senior insurance analyst Swarup Kumar Sahoo said regulatory initiatives to develop the insurance market and increase insurance penetration will drive the growth of the general insurance industry in Malaysia.
"The rising traffic accident rate and increasing frequency of natural disasters will support higher policy uptake and premium growth in the industry," he said.
The company also said the introduction of the new Risk-Based Capital 2 (RBC2) framework starting in Jan 2027 will strengthen the insurance industry, boosting customer confidence and supporting growth.
Additionally, Sahoo said higher healthcare costs heightened health consciousness among consumers, supporting the demand for health insurance policies.
"Premium rates will continue to increase in the presence of the ageing society, rising non-communicable diseases, and a strained public healthcare system.
"PA&H insurance is forecasted to grow at a CAGR of 7.6 per cent during 2025-2029," he said.
Globaldata further said other general insurance lines, such as financial lines, liability, and marine, aviation, and transit, are estimated to account for the remaining 17.7 per cent share of the general insurance GWP in 2025.
"The growth of Malaysia's general insurance market remains positive. Rising consumer awareness, regulatory developments, and the increasing frequency of natural disasters will play a pivotal role in shaping the industry's trajectory over the next few years.
"However, the expected new reciprocal tariffs from the United States will create uncertainties and change the dynamics," he added.
